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Proposed federal cuts could affect Loveland nonprofits

The president's blueprint budget includes cuts to human services and housing programs, which local officials say could be detrimental to residents

By Saja Hindi

Reporter-Herald Staff Writer

Posted:
03/18/2017 05:16:00 PM MDT

The preliminary outline for President Donald Trump's 2018 budget and proposed cuts to human services programs could impact Loveland nonprofits if implemented.

The Department of Housing and Urban Development is facing a funding cut of about $6.2 billion (a 13.2 percent reduction), with the elimination of $3 million in Community Development Block Grant funding. The Department of Health and Human Services is looking at $15.1 billion decrease (17.9 percent reduction). The elimination of low-income home energy assistance programs and community services is also proposed.

The city of Loveland provides CDBG and other human services funding through a competitive grant application process, with much of the CDBG funding going toward capital projects.

While that will affect Loveland nonprofits that receive federal funding through the process, it won't impact the city's human services budget (which comes from the city's budget). But it will mean less funding to the local nonprofits from federal dollars.

"The only thing that cities can do is ask other funders for more money and they could be private foundations or the states," said city of Loveland Community Partnership administrator Alison Hade. "That's not necessarily a bad thing to do, but the truth is people are doing that already."

At some point, she said, those foundations and other sources won't be able to make up the deficit.

One of the programs highlighted on a national level of being impacted by the cuts is Meals on Wheels.

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While the Loveland chapter's outgoing executive director Elizabeth Harless declined to comment on the potential cuts or impact because she said it's too early to tell and nothing is set yet, she referred to a statement from the national Meals on Wheels.

"Though the budget does call for the elimination of several significant sources of funding for our member programs nationwide, it does not call for the elimination of Meals on Wheels services as a whole," the emailed statement read.

The statement notes that the president's proposal includes $54 billion in reductions to non-defense discretionary programs, and the president said, "We are going to do more with less, and make the government lean and accountable to the people."

"However, Meals on Wheels and other senior nutrition programs across the nation simply cannot do more with less: The senior population in the U.S. is growing exponentially while federal funding has not kept pace. The gap between those in need and those being served through OAA Nutrition Programs continues to grow, and waiting lists are mounting," the statement read.

The statement stressed that all local chapters should do outreach work in the months ahead to ensure members of Congress understand the work of Meals on Wheels, its impact and the need for the funding.

"We expect the president's full budget in the coming months, at which point we will have more details on how vital funding for our members will be affected. However, if the president's budget is enacted, it is difficult to imagine a scenario in which our local programs would not be negatively impacted," it stated.

The Loveland Meals on Wheels chapter doesn't receive CDBG funding — in fact, Loveland doesn't receive as much CDBG funding as other cities, so it won't feel the impact of that specific elimination as significantly as others, Hade said.

However, Hade points out, nonprofits such as Loveland Habitat for Humanity depend on CDBG funding to help with land purchases as does the Volunteers of America's handyman program in Loveland.

Loveland's allocation for CDBG last year was $336,000 — 65 percent goes to capital projects and housing rehab, with much of the rest going to housing projects and 15 percent toward services, according to Hade.

Loveland Habitat for Humanity Executive Director Cindi Werner said CDBG dollars are important when the nonprofit wants to purchase land and build, something it plans to do in the next few years.

"That has been one of the elements we use to keep that cost affordable for us," she said. "We don't have the same luxury as a private developer to pay market value for land."

So, as local officials look to the future, she said, they worry about that purchase.

Werner said the local Habitat branch also receives federal funds from grants through the state chapter of Habitat for Humanity. The money comes from the U.S. Department of Housing and Urban Development.

It's unclear how that will impact the Loveland chapter yet, but Werner plans to attend a global Habitat for Humanity conference at the end of March to discuss with other executive directors and national officials the potential impacts.

"We're waiting to hear with bated breath on what we hear in Atlanta (at the conference)," she said.

The Human Services budget will also see a cut — about $50,000 from federal dollars, Hade said. Nonprofits apply for those funds, and the city would lose about a tenth of its allocation for those services.

But, Hade points out, Loveland is fortunate in that it has "a local government that cares about people."

So the city isn't "overly dependent on the federal government" for human services, Hade said, but when it comes to housing vouchers, the situation is a little different.

While Hade called the proposed CDBG elimination "a real shame," she said even more concerning is the potential cuts to the Section 8 housing program, or the Housing Choice Voucher Program.

"Communities across the United States have come a long way along housing the homeless and this is likely to set us back about eight years," Hade said.

And it wouldn't just affect the homeless — it affects low-income working families, seniors and residents with disabilities.

Hade estimates that about half of Loveland's vouchers go to seniors or people with disabilities and the other half to single parents, "and if they lose their housing, then we have a very big problem on our hands."

"That's where as a community, where were going to be hit the hardest," Hade said. "That's where people are incredibly vulnerable and will end up homeless."

A statement from the National Alliance to End Homelessness on the budget blueprint noted that eliminations to the United States Interagency Council on Homelessness, CDBG and the HOME Investment Partnerships Program would impact the local initiatives they support.

The statement said the blueprint doesn't specify the funding proposed for the Homeless Assistance Grant and Emergency Solutions Grant programs, but there is indication that it's at least as much as in fiscal year 2016 and potential cuts or changes the Housing Choice Voucher Program.

"No cuts are specified but reforms and efficiencies are, and there is a big ($3.4 billion) cut in the agency budget that is not explained. Many feel it could only come from the voucher program," the statement read.

The blueprint, however, also includes a proposed increase of $4.6 billion in discretionary funding to the U.S. Department of Veterans Affairs, and though details aren't available, according to the policy report, preventing homelessness is mentioned.

As Congressional leaders prepare to discuss the proposed budget and potential implications, nonprofit leaders locally and across the country are working to advocate for their clients and funding.

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